Remarks at New Markets, New Jobs: The National Export Initiative Small Business Outreach Tour, New Orleans, Louisiana

AS PREPARED FOR DELIVERYMonday, April 11, 2011CONTACT OFFICE OF PUBLIC AFFAIRS202-482-4883

Commerce Secretary Gary LockeRemarks at New Markets, New Jobs: The National Export Initiative Small Business Outreach Tour, New Orleans, Louisiana

Hello everybody.
Thanks for those kind words, and for having us here today.

I’d like to give
a special thanks to the people who helped make this event happen: Our hosts, the
World Trade Center of New Orleans and Tulane University, as well as our many
sponsors.

And of course,
thanks to all of the speakers and Commercial Officers who traveled here to share
their vast knowledge.

Also here with
us are powerful fighters for the city of New Orleans: Congressman Cedric
Richmond and Mayor Mitch Landrieu.

Both
have been strong voice voices for New Orleans’ small businesses and working
families.

Congressman
Richmond has also been a major advocate in Washington for federal resources to
help New Orleans businesses stay competitive in the global marketplace.

Finally, I’d
like to take this opportunity to acknowledge Donald Van De Werken, the Director
of the U.S. Export Assistance Center here in New Orleans. Don has reached an
impressive milestone in his career: 20 years of service.

For two decades,
he’s worked tirelessly to help companies enter new overseas markets, allowing
those firms to create jobs here at home. Don, thank you for your service and it
is my honor to present you with this certificate and lapel
pin.

As you all know,
two weeks from now will be the anniversary of the tragic Gulf Coast Oil Spill.
And of course we're coming up on six years since Hurricane Katrina. Before we
really get started, I just wanted to note all the progress that’s been made to
rebuild this great city.

New Orleans’s
citizens have shown remarkable resilience in the wake of these tragedies. I
know New Orleans is still a long way from full recovery, but the Obama
administration is committed to keeping things moving in the right
direction.

In fact, later
this week, the Commerce Department’s Economic Development Administration will
announce $1.85 million worth of grants that will lend a hand to your impressive
efforts.

This money will
help fund important activities, from workforce training programs in the seafood
industry, to technical assistance and consulting services to assist coastal
communities and businesses.

Giving New
Orleans businesses the extra help they need to recover is a priority for this
administration … and it’s why we’re here in the Big Easy
today.

This event is
the third leg of our “New Markets, New Jobs” business tour.

The purpose of
this nationwide trip is simple: To help small and medium-sized American
businesses sell more goods and services around the world, so they can create
more jobs here at home.

In the next few
minutes, I’ll explain how we’re going to do it.

But first, I
think it's important to identify the stakes of what we’re talking about here
today.

In his State of
the Union address in January, President Obama said how important it was for
America to win the future.

He said the most
important contest our nation faces is not between Democrats and Republicans, but
between America and countries around the world that are competing like never
before for the jobs and industries of the future.

And the primary
goal of the Obama administration is to give businesses like yours the tools you
need to win in the global economy.

On the one hand,
we’re aggressively incentivizing investment here in America.

That’s why
President Obama insisted on two key provisions in the December tax package he
signed that will directly help Louisiana companies and their
customers.

It featured a
new expensing benefit, which will allow companies to write off 100 percent of
their machinery and equipment purchases made in 2011.

That is the
largest temporary investment incentive for businesses in the history of the
United States.

The package also
contained a payroll tax cut that will put as much as an extra $1,500 in the
pocket of a Louisiana family making $75,000 – helping to drive new business and
local companies, stores and restaurants.

And in his State of the Union address, President
Obama called for comprehensive corporate tax reform. He said he wants to work
with Congress to get rid of the loopholes, level the playing field and use those
savings to lower the corporate tax rate for the first time in 25 years…without
adding to our deficit.

At the same
time, the administration is making unprecedented efforts to help companies like
yours break into foreign markets.

The
simple fact is that the more American and Louisiana companies export, the more
they produce. The more they produce, the more workers they need. And that means
jobs. Good paying jobs here at home.

Consider that
exports directly support nearly 10 million U.S. jobs, with more than 140,000
export-supported jobs here in Louisiana.

Last year,
nearly 3,000 companies exported goods from Louisiana. 86 percent of those were
small-and medium-sized businesses. The very businesses that are leading the
charge in creating jobs and spurring economic recovery.

The
jobs created by exports are good-paying jobs that pay 15 percent more than the
typical wage in America. Exactly the type
of jobs we need a lot more of.

That’s why early
last year President Obama announced his National Export Initiative, which
mobilizes departments throughout the federal government to double U.S. exports
by 2015 in support of several million new jobs.

We’re already
off to a good start. Exports have been a key driver of America's economic
recovery, accounting for nearly half of U.S. economic
growth since mid-2009.

Exports
today account for 12.8 percent of all U.S. economic output, which is the biggest
portion of our economy since the Commerce Department began tracking this figure
in 1929.

In
New Orleans, $47.8 billion in goods were exported through your ports alone in
2010 … that’s a 62 percent increase from just four years
prior.

But there’s
still plenty of room to grow.

And the Obama
administration is committed to ensuring that American companies can capitalize
on the potential of expanding global markets.

You saw a great
example of this last December, when President Obama signed a landmark trade
agreement with South Korea. We are working hard to get this deal through
Congress. And if it passes, it could boost annual U.S. exports to Korea by $11
billion and support at least 70,000 American jobs.

Remember that in
the wake of the recent free trade agreement with Chile, Louisiana’s exports to
that country grew by 291 percent. The Singapore free trade agreement led to an
increase of 739 percent.

We are hoping to
see similar success with the Korea deal.

All in all,
America’s economic output is expected to increase more from the U.S.-Korea
agreement than from our last nine trade agreements
combined.

As I said
earlier, small- to medium-sized businesses are absolutely critical to expanding
American trade with the world.

Despite all the
progress we've seen in boosting American exports over the last few years, we can
do so much more.

Consider the
fact that only 1 percent of U.S. companies export – and of those that do, 58
percent export to only one country, typically to Mexico or
Canada.

Now, of course
it's important to sell more within the United States.

But in a global
economy where 95 percent of the world's consumers live outside U.S. borders,
you've got to go where the customers are.

The more markets
you are selling in, the more diversified your customer base is. That’s why U.S.
companies that exported a lot generally held up better during the recession than
companies that didn't.

And the truth of
the matter is that your “made-in-the-USA” goods and services are highly valued
and greatly desired throughout the world.

Still, there are
plenty of reasons why many U.S. companies don’t export:

They may have
trouble getting the financing they need to produce more of their goods;
or

They may be
worried about getting timely payment from an unfamiliar
customer.

They may have
difficulty understanding and navigating foreign customs and regulations; or

They may not
have the networks to get meetings with potential distributors, customers or
foreign government decision-makers.

The National
Export Initiative, or NEI, is designed to help more companies – like those
gathered here today – overcome these hurdles.

We understand
that when you're running a small business, you’ve got:

Payroll to
meet;

Orders to fill;
and

Customers to
serve.

You might not
have time to go searching for government services that can help your
business.

So we’re coming
to you.

Today, we've got
teams from the:

Export-Import
Bank;

Small Business
Administration;

Agriculture
Department; and

The Office of
the U.S. Trade Representative’s office.

From the
Commerce Department, we’ve got representatives from our International Trade
Administration, which advocates for U.S. businesses in 77 countries around the
world, and has outreach teams in over 100 cities across
America.

To get their
assistance, all you need to do is pick up the phone and call 1-800-USA-TRADE or
go online to www.export.gov.

Commerce
Department experts will then:

Work with you to
design and implement a market entry or expansion strategy;

Conduct an
international search to find potential agents or distributors for your unique
business; and

Contact
potential overseas businesses.

Think of it as
match-making for exporters. We'll keep searching for partners and customers for
you until you find the right fit.

The Commerce
Department's export assistance team in New Orleans has a proven track record of
connecting Louisiana businesses to buyers in foreign
markets.

And our local
teams can connect you with resources from our other government partners, like
the Export-Import Bank.

To cite just one
example of the great work the Export-Import Bank does, they’ll actually
guarantee payment from a foreign customer that wants to buy your good or
service. This is the type of security a small business owner needs to sleep at
night!

Our goal here
this week is to help all of you succeed.

With that in
mind, staff from your local U.S. Export Assistance Center is here. These are
people who can answer your most difficult questions. USEAC folks, please raise
your hands so people know where you are.

In fact, as an
added resource for Louisiana businesses we also have experts from our
CommerceConnect initiative now operating throughout all five states in the Gulf
Coast region.

CommerceConnect
is like a one-stop for local businesses.

It has
cross-trained staff working with state and local partners to help area
businesses access the full menu of federal, and many local resources that can
help them compete in the global economy.

No matter where
businesses are in their life cycle – whether just getting off the ground or
looking to expand into overseas markets – CommerceConnect can
help.

We launched this
program in Michigan in 2009 and operations are expanding to nearly 20 regions
nationwide. And I encourage everyone here to take advantage of their
services.

I know for many
companies in Louisiana and along the Gulf Coast, you're just starting to see the
benefits of an economy that’s thriving again. I'm confident that that positive
momentum will continue in the year ahead.

But one thing is
clear:

For the American
economy to produce the millions of new jobs we need, our small and medium-size
businesses must lead the way.

When you
succeed, the entire American economy succeeds.

And the Obama
administration will do everything it can to give you the help you
need.